EUR/CHF’s fall from 0.9394 extended lower last week. Despite interim recovery, the move accelerated through near term channel support towards the end of the week. The development confirms that whole rebound from 0.9178 has already completed. Initial bias is now on the downside this week for retesting 0.9178 low first. Firm break there will resume larger down trend. On the upside, above 0.9253 support turned resistance will turn intraday bias neutral and bring consolidations, before staging another decline.
In the bigger picture, another rejection by 55 W EMA (now at 0.9360) keeps outlook bearish. Downtrend from 1.2004 (2018 high) is still in progress. Firm break of 0.9178 will target 61.8% projection of 1.1149 to 0.9407 from 0.9928 0.8851. Outlook will stay bearish as long as 0.9394 resistance holds, in case of recovery.
In the long term picture, overall long term down trend from 1.2004 (2018 high) is still in progress. Outlook will continue to stay bearish as long as falling 55 M EMA (now at 0.9763) holds.
